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China Slaps Tariffs On $3 Billion Worth Of US Goods

Apr 03 2018 by Lorena Waters

U.S. President Donald Trump is separately preparing to impose tariffs of more than $50 billion on Chinese goods following an investigation under Section 301 of the 1974 U.S. Trade Act. He also called it good news that the USA and China are talking with each other.

The tariffs, effective Monday, will neutralise cost savings from importing cheaper USA ethanol versus domestic supply, said three sources that participate in the market.

"We hope that the United States will rescind its measures that violate World Trade Organization rules as quickly as possible", the ministry said in an online statement about China's retaliatory tariffs.

The European Union and other USA trading partners - including South Korea but not Japan - were exempt from Trump's earlier tariff hike after warning they too, could impose new tariffs.

"Given the increasingly hostile rhetoric backed up by tangible trade sanctions already announced by both the USA and China, it will take a determined effort on both sides to come up with a mediated compromise that tamps down trade tensions and allows both sides to save face", said Eswar Prasad, professor of trade policy at Cornell University.

Lawmakers, especially from the Midwest, are anxious about the effect of tariffs on their agriculture producers, but many share the administration's concerns about Beijing's trade practices.

Beijing is also working to reduce its trade imbalance with the US, mainly through increasing American imports.

Soon after the announcement, an editorial in the widely read Chinese tabloid Global Times warned that if the US had thought China would not retaliate or would only take symbolic counter-measures, it can now "say goodbye to that delusion".

Boeing announced a $37 billion order for 300 planes from China a year ago and said in a forecast in September that the country will buy as much as $1 trillion worth of aircraft in the next two decades.

Trump put tariffs on steel and aluminum imports to America last month, then doubled down with a second round of tariffs on Chinese-made electronics, furniture, and other goods.

Chicago Board of Trade May ethanol futures fell 2.5 per cent or about 4 cents to US$1.44 per gallon, the lowest since February 9, as trade resumed after the tariff announcement. - Reuters pic WASHINGTON, April 3 ― The Trump administration this week will unveil a list of advanced technology Chinese imports targeted for United States tariffs to punish Beijing over technology transfer policies, a move expected to intensify trade tensions between the world's two largest economies.

"In general, this is part of the overall trade negotiations the Trump administration has", he said.

Beijing said the move was to safeguard China's interests and balance losses caused by new USA tariffs.

USA imports had recently picked up after prices fell enough to be attractive even with the high duties. He has promised to bring down the United States' huge trade deficit in goods with China, which reached $375 billion past year.

Benchmark U.S. crude lost $1.83, or 2.8 percent, to $63.12 a barrel in NY.

California cherry growers are about 30 days out from the start of harvest and particularly anxious about access to Chinese markets, said Matt McInerney, senior executive vice president at Western Growers, which represents produce farmers, handlers and shippers from states including California and Arizona.

Xi Jinping, Chinese President has said Cameroon is an important partner of China in Africa. It proposed 25 percent tariffs on Chinese products including aerospace, communications technology and machinery and said Washington will step up restrictions on Chinese investment in key US technology sectors.